Vietnam Plans to Establish Legal Framework for Cryptocurrencies by May 2025 Amidst Official Acknowledgment of Non-Prohibition Status

According to government officials in Vietnam, cryptocurrencies are not prohibited, but there is an urgent need for a legal framework to regulate their use. This framework is currently being developed by the Finance Ministry and is expected to be completed by May 2025.

Cao Dang Dinh, the deputy head of the Civil Law Department at Vietnam’s Ministry of Justice, emphasized the importance of establishing this framework promptly. He noted that while cryptocurrencies are not banned, having clear regulations is crucial for their proper use.

This initiative aims to bring clarity and stability to the cryptocurrency market in Vietnam, providing guidelines for businesses and investors operating in this sector.

Therefore, the development of a legal framework for cryptocurrencies in Vietnam is expected to bring clarity and stability to the market, providing clear guidelines for businesses and investors and potentially increasing confidence in crypto-related activities.

Vietnam’s Anti-Money Laundering Measures and Crypto Regulation Effort

Vietnam has asked its central bank to stop cryptocurrencies from being used for money laundering. The Finance Ministry is creating rules for crypto assets, expected by May 2025.

This is important due to many Vietnamese own cryptocurrencies, to prevent misuse and risks, as mentioned by Dinh from the Ministry of Justice.

However, the urgency comes from the high risks of cryptocurrencies being exploited. The government wants to protect users and make the crypto scene in Vietnam safer.

Their steps against money laundering and upcoming regulations could boost trust among users and investors in Vietnam’s crypto market.

Vietnam’s Comprehensive Approach to Crypto Regulation: Building Trust and Security

The Vietnamese Finance Ministry has been studying crypto assets for years and formed a research group in 2021. Their goal was to understand crypto assets and suggest legal changes. The group advised regulatory bodies on licenses for crypto activities, regulated business operations, and reported suspicious activities.

This shows that Vietnam is actively working to create a robust framework for managing cryptocurrencies, ensuring that regulations are in place to protect investors and prevent misuse of these digital assets.

Vietnam’s ongoing study and legislative efforts regarding crypto assets, including the formation of a research group, could lead to a more secure and regulated crypto market, enhancing investor protection and trust in digital assets within the country.